Wednesday 10th January 2024

(3 months, 2 weeks ago)

Lords Chamber
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Motion to Approve
19:30
Moved by
Lord Benyon Portrait Lord Benyon
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That the draft Regulations laid before the House on 30 November 2023 be approved.

Lord Benyon Portrait The Minister of State, Department for Environment, Food and Rural Affairs, and Foreign, Commonwealth and Development Office (Lord Benyon) (Con)
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My Lords, I refer to my entry in the register. The draft instruments—the Biodiversity Gain Site Register (Financial Penalties and Fees) Regulations 2024 and the Biodiversity Gain (Town and Country Planning) (Consequential Amendments) Regulations 2024—were both laid before the House on 30 November. The instruments have been grouped as they are part of a package of regulations which work together to introduce the new framework for mandatory biodiversity net gain. Although biodiversity net gain is a key policy delivered by the Environment Act, some of the policy involves amendments to the planning system. I will speak to both instruments together, given their interlinks, but I will not profess to be an expert om the intricacies of the planning system and commit to writing to noble Lords on points of particular detail.

The instruments laid before the House today form part of a package of SIs that will commence the new, world-leading biodiversity net gain requirement. This is a new approach to development and land management that was legislated for in the Environment Act 2021 and had strong support across both Houses. It aims to leave the natural environment in a measurably better state than it was beforehand through requiring a 10% net gain for biodiversity on each eligible grant of planning permission. These gains must be delivered, first, through on-site habitat enhancement or creation where possible, then through off-site enhancements or through purchasing units from the market and, finally, as a last resort, through purchasing statutory credits sold by the Government.

A public consultation on the policy and implementation of biodiversity net gain was held in 2022. The government response, published at the beginning of 2023, confirmed the policy intention for mandatory biodiversity net gain and has informed the drafting of these regulations.

I turn first to the Biodiversity Gain Site Register (Financial Penalties and Fees) Regulations 2024. The Environment Act 2021 gives the Secretary of State for the Environment, Food and Rural Affairs the power to make provision for a register of biodiversity gain sites. The core purpose of this publicly available register is to record allocations of off-site biodiversity gains to developments. The register will be established by the Biodiversity Gain Site Register Regulations 2024.

This instrument makes provision for the imposition of a financial penalty and the payment of fees relating to applications to that register. This instrument provides for imposing financial penalties to help ensure that the biodiversity gain site register contains accurate information. The provision for financial penalties will encourage compliance, deter individuals from submitting incorrect information and remove illicit financial benefit—for example, through cost avoidance.

This instrument also provides for fees to be charged for different applications to the register. These applications include gain site registration, amendment applications and applications for the allocation of habitat enhancements to development. The fees have been set to achieve cost recovery for the set-up and ongoing maintenance of the register. Developers are not obliged to use the biodiversity net gain register and should first aim to achieve biodiversity gains on site before turning to off-site gains. Landowners who choose to supply off-site gains to developers must apply to register their land. We expect that they will do so only if the benefits from selling units outweigh the costs. Without these regulations setting the requirement for fees to be paid and the amount to be paid, the register would not achieve cost recovery and there would be a significant cost to the Government.

I now turn to the Biodiversity Gain (Town and Country Planning) (Consequential Amendments) Regulations 2024, which have been ably drafted by the Department for Levelling Up, Housing and Communities. The Environment Act 2021 amended the Town and Country Planning Act 1990 to make provision for biodiversity net gain in the planning system. The Act specifically adds a new Schedule 7A, which sets out the statutory basis for the 10% biodiversity gain objective, the metric and the general biodiversity gain condition which will apply to those planning permissions. It also made consequential changes to other parts of the Town and Country Planning Act.

These regulations will make further consequential changes. First, they provide rules within Schedule 7A for determining the local planning authority which is responsible for the approval of a biodiversity gain plan required under the general biodiversity gain condition. Secondly, they further amend Section 73 of the Town and Country Planning Act, which enables the variation of conditions of previous planning permission to cover the circumstances when an earlier biodiversity gain plan is to be regarded as approved where the development’s on-site habitat is irreplaceable habitat. Finally, they make amendments to Section 78 of the Town and Country Planning Act for the purpose of appeals about determinations by planning authorities in respect of the biodiversity gain plan. These are technical amendments to ensure the provisions for biodiversity net gain in the Town and Country Planning Act work.

In conclusion, let me emphasise that the regulations are essential to the successful delivery of the new mandatory net gain requirement, which will help to deliver much-needed gains for nature. Once the regulations are approved by both Houses, we will lay the rest of the biodiversity net gain regulations, which we have published in draft. I commend these draft instruments to the House.

Baroness Bennett of Manor Castle Portrait Baroness Bennett of Manor Castle (GP)
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My Lords, I was expecting more people than this. I thank the Minister for his introduction, and I think it is very clear that what we are looking at here are two instruments from a very major set that will finally implement the idea of biodiversity net gain, which your Lordships’ House and the other place have been debating for what now feels like many years.

Before looking at the detail of these two statutory instruments, I think that it is worth thinking about what we are talking about here. We are trying to deliver a system, however much some of us—I include the Green Party in this—have doubts about it, that means that we do not keep going backwards. As we stand in the House tonight, we are about to see the destruction of a veteran oak tree in Melton Fields in East Riding for the construction of an Amazon warehouse. I have been on the site and seen this happening. The biodiversity net gain that is being offered is “We will have some wetlands over there”—I am not quite sure where the sign that says “Birds, go that way” will be—but there is huge concern and there is still so much that we are losing. I think it is crucial that we see that.

I have a couple of questions about the instruments that I would like to put to the Minister. He talked about ensuring full cost recovery in the fees being charged. What will be the situation for projects for the public good, such as a new hospital for the NHS, a community centre or group? What provision is there to make sure that the people who can afford to pay are paying and that those community projects are not stopped but able to go ahead?

The other point which I think reporting in recent days has raised—this fits in with the levelling-up Bill that your Lordships’ House spent an inordinate of time on last year—is that we are seeing controls being put on for more than 10% biodiversity net gain, and that is overwhelmingly concentrated in the south of England, where there are local area partnerships. In terms of these instruments, but also more broadly, will there be allowance for the regional differences, the regional cost differences and, perhaps even more importantly, the regional ability to pay, in the provision in these statutory instruments?

Lord Deben Portrait Lord Deben (Con)
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My Lords, this is a thoroughly good change and we should be entirely pleased that we are taking this step because it is a step that we have not taken before. I sometimes argue with the noble Baroness, Lady Bennett, but saying thank you is important if we are to get Governments to do more, so I start by saying thank you.

I recently attended a very interesting conference in Essex in which an expert explained exactly how this system worked. I am now much better informed, but it took some time to explain it in a way that, to put it simply, ordinary people understand. I hope the Minister agrees that we need to explain this much more effectively than we have until now if we are to get people to join in the “thank you” I started with.

I know that the Minister has rightly suggested that he is not an expert on planning, but he will understand when I say that I am disappointed that this Government have still not introduced the necessary overarching element in the planning laws that says that no planning permission should be given unless it fully takes into account the national statutory requirement for net zero in 2050 and the two important promises that we made at COP 26 on the targets for 2030 and 2035. Until the planning system as a whole insists that decisions are made within that context, the planning system will not be working properly for us to be able to deliver what we now, by law, have to deliver.

He may want to write to me on this subject, and it may be a long letter, but if it does not say, “Yes, we are going to do it”, it will not be acceptable because we have to do that as a central issue. It is barmy to have a planning system in which we fiddle about with little bits of what my noble friend said were technicalities when we cannot make the fundamental decision that the planning system itself should be beholden to the Government’s and the nation’s commitment to net zero.

Lastly, I hope that the Minister will be very careful about how this thing works. There are real issues about how it will work on the ground. Can he help us by telling us what measures the department has for monitoring how it works and for reporting back, so that we know how that monitoring has worked out? This is a new thing and something we should very much cheer on, but like most new things I would like to know how it is working and how we can improve it in future.

Baroness Thornhill Portrait Baroness Thornhill (LD)
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My Lords, I will make just a short intervention as my noble friend will be leading on this. I have learned recently that some 20 councils have emerging plans or have adopted local plans that are above the impending prescribed national 10% level. That is a big improvement on last year. During the passage of the levelling-up Bill we had quite a long conversation about the role of the national development management plans and did not get to a satisfactory conclusion on whether councils would be able to demand this higher level. We would like to think that they will and could, but there was still a question mark over that. Can the Minister chat to his planning colleagues and clarify that? I am sure that if it were clarified, more councils would want to take that higher standard.

19:45
Lord Bishop of Norwich Portrait The Lord Bishop of Norwich
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My Lords, I welcome the two statutory instruments before us and the Minister’s helpful introduction. I declare an interest as a Church Commissioner and a member of Peers for the Planet.

Having an accurate register of biodiversity gain is of key importance as we move ahead with the Government’s commitment to nature recovery. There is only one parcel of land and it is increasingly being competed for. We eat from it, grow on it, live on it, move across it, build infrastructure over it, make things on it, extract things from under it, drink water that flows over it, breathe the air above it, sequester carbon in it and generate energy on it. The list goes on and on.

But we share our land with rich flora and fauna—biodiversity that we have seen drastically decline in our own lifetimes. Making space for biodiversity to thrive in an integrated way is part of living more harmoniously with ourselves and with each other on the limited space of our island home but also on this single island planet home of ours, which we share with the whole of creation. Does the Minister agree that when biodiversity thrives, people thrive? To be out in nature, to see nature around us, to smell and touch, to hear and taste nature is good—good for our mental health, good for children’s learning, good for communities to live more contentedly together, good for financial returns and sustainability of business and good for rekindling in us a sense of joyous wonder.

I am interested that the ancient word “covenant” appears a number of times in the statutory instruments before your Lordships. The word reminds us that land is a gift but also of the danger that land can become a temptation, not least to exploit, and we forget what it has been and what it could be. “Covenant” reminds us that we are stewards and that land comes with responsibilities. There is a good biblical precedent in the 10% tithe that in these instruments is the target, though I praise those local authorities and developers that, as the noble Baroness mentioned, have increased that target, because I suspect that a collective greater ambition will be needed to reverse biodiversity decline.

What I would really like to see as a result of this secondary legislation is for all involved in land to begin to take a real pride in enhancing biodiversity, halting and reversing the decline in species abundance, reducing extinctions and restoring and creating wildlife-rich habitats. Does the Minister agree that this should become a badge of honour, something that every development strives for, enhancing developers’ brand and reputation and, more than that, doing it because it is the right thing for us all to do?

We must leave our natural world in a better state than we have inherited it and how we have allowed it to decline under our stewardship. I thank the Minister and all the officials involved in bringing these statutory instruments before your Lordships.

Baroness Bakewell of Hardington Mandeville Portrait Baroness Bakewell of Hardington Mandeville (LD)
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My Lords, I thank the Minister for his introduction to these two SIs and declare my interests as set out in the register. Both instruments are straightforward and in line with the Environment Act requirements for setting up a biodiversity gain site register in which each planning application will, in future, be required to have an entry.

A fee is levied to cover the cost of this register, as the Minister has said. These fees range from £639 for the actual entry down to £45 for recording the habitat enhancement and £89 for an application to have an entry removed. These fees do not seem very large to me, but I am not the person who will be paying them.

There is a penalty fine of £5,000 for providing false information that has been included in the entry in the BNG register. I am unclear whether the original inclusion fee and the penalty fine of £5,000 are paid to the relevant local authority that is responsible for keeping the register; can the Minister please provide clarification? There is also a further penalty charge for non-payment of the original £5,000 fine, which according to the instrument is paid to the consolidation fund. Can the Minister clarify where the responsibility for the consolidation fund lies? Neither the instrument itself nor the Explanatory Memorandum explains this; perhaps it is assumed that everyone knows.

I agree with the comments made by the noble Lord, Lord Deben, on the planning system. I also congratulate the right reverend Prelate the Bishop of Norwich on his thought-provoking contribution. I am reminded of the land use committee I sat on last year, which produced a report about land use across the whole country that the Government, due to a change of Secretary of State, were quite dismissive of.

These SIs are a step in the right direction. There was discussion in the other place on Monday about off-site biodiversity gain, with Minister Pow indicating that the requirement was for a 10% net gain for biodiversity from each eligible grant of planning application. That gain could be delivered through on-site habitat enhancement or creation where possible. Otherwise, it could be delivered through off-site enhancements, purchasing units from the market or, in the last resort, purchasing statutory credits sold by the Government, as the Minister indicated.

I would like the Minister’s reassurance that both local authorities and the Government will stress that on-site habitat enhancement and creation are always preferable, especially for the benefit of local residents and businesses. Once enhancements are off-site or are in the form of purchased credits, there is a loss of ownership that could lead to complacency about the value of the register and the scheme. Can the Minister say whether the Government are considering keeping a second register alongside the first, which records specifically whether the biodiversity gain is off-site or in the form of a purchased unit from the market or the Government? Such a register would increase both transparency for the public and accountability for the development or business concerned.

I turn now to the second instrument, the Biodiversity Gain (Town and Country Planning) (Consequential Amendments) Regulations 2024. The EM indicates that not every planning application will be eligible for a biodiversity gain plan because the gain might be less than 10%. Can the Minister give an example of what kind of land or development this might be? At the other end of the spectrum is the loss of “irreplaceable habitat”, but the EM does not indicate that planning approval will not be granted where this is the case, only that development of on-site habitat should minimise the effect of the loss of irreplaceable habitat. I am extremely concerned that it should appear to be acceptable that irreplaceable habitat would be lost. This is hardly likely to help the country meet its biodiversity targets.

Lastly, I raise the issue of the availability of local authority ecology officers. As everyone is aware, local authority budgets are under extreme pressure, not least due to social care issues. Approximately 30% of local authorities employ an ecology officer, which leaves 70% with officers who do not have the skills to accurately assess what constitutes a biodiversity gain and what does not. Perhaps the Government think that the fees for the entry on the register and the fines for inaccurate information will help local authorities to train up their current workforce in ecology matters or to buy such services in. It would be much better to have a properly trained and experienced workforce in place from the start of this register, to ensure its success. Nevertheless, I am supportive of these two SIs and look forward to the Minister’s comments.

Baroness Hayman of Ullock Portrait Baroness Hayman of Ullock (Lab)
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My Lords, I thank the Minister for introducing these two instruments, which we very much welcome as they are integral to rolling out the new biodiversity net gain framework and integrating it with the planning system. I intend to discuss them together but, sadly, not as poetically as the right reverend Prelate the Bishop of Norwich did in his comments.

When these regulations were debated in the other place, a number of concerns were raised about how the new framework would operate in practice; the noble Lord, Lord Deben, talked about this as well. These included concerns regarding local planning authorities. Some of the questions raised were not completely addressed, so I will come back to some of these; I also have a few other questions.

The noble Baroness, Lady Bakewell of Hardington Mandeville, talked about ecology officers. One thing that was raised by my colleague in the other place, Barry Gardiner MP, was a statistic that only a third of local authorities have an ecological officer. This was not addressed by the Minister in her response in the other place, so can the Minister confirm whether this is the case? If it is correct, how will the Government address the shortfall and support local authorities? If the Minister is unaware of it, he could write to me as it would be interesting to know whether that figure is correct.

I looked at the Government’s impact assessment on biodiversity net gain and local nature recovery strategies, and it says:

“Normal enforcement procedures at the local authority level, along with transparent site planning documents and habitat management plans, will provide some confidence that on-site habitat delivery will be faithfully carried out”.


It also states:

“We continue to work with local authorities and our agencies to quantify any additional costs to deliver biodiversity net gain, in addition to professional organisations to make sure there is access to the right training, ecological expertise and systems required”.


It has been mentioned that local authorities are under a certain amount of financial pressure, so it would be helpful if the Minister could outline how the Government see all this working in that context and whether that figure about the lack of ecological officers is correct.

The noble Baroness, Lady Bakewell, also mentioned off-site enhancement, and there was another question that did not have a full answer in the Commons debate regarding off-site provision. This was in the event that a development in one local authority area opts to achieve off-site gain on land that falls within another local authority area. It would be very helpful if the Minister could confirm which authority is responsible for the monitoring and enforcement if this happens. These SIs deal with the split between different levels of local authority—county or borough, for example—but do not seem to address the geographical issues that might arise.

According to the impact assessment that I mentioned earlier, the total funding for biodiversity net gain is expected to be less than £200 million per year. Can the Minister comment or shed any light on why this figure is so low? In addition to biodiversity net gain, the Government also have a target to halt the decline in species abundance by 2030. Given that we are talking about increasing biodiversity from current levels, can the Minister provide any update on the current level of species abundance? What is the baseline assessment being used?

In his introduction, the Minister mentioned the appeals process. The SI deals with the time limits that apply for appeals procedures should a local authority decline, or otherwise fail to approve, a biodiversity gain plan. What are the anticipated costs for local authorities, or the potential for developers to submit sub-par plans knowing that they can then go to court? I ask this because, in the past, some developers have cited viability as a means of avoiding Section 106 or community infrastructure levy contributions and have occasionally threatened to go to appeal if officers recommend refusing an application. This is to ensure that we do not have those sorts of issues arising in this case.

20:00
Looking at the SI that deals with the financial penalties, which the Minister mentioned in his introduction, we have heard that the maximum fine that can be imposed by the register operator if an applicant is suspected of providing false or misleading information when registering land is £5,000. It would be interesting to know how this sum was arrived at, and whether it is deemed an appropriate disincentive.
I draw attention the Explanatory Memorandum to the SI on site registration fees. Paragraph 7.5 states:
“Someone might attempt to secure the registration of land by providing false or misleading information, or to have false or misleading information about the nature or extent of habitat enhancements required on the land recorded in the register, so as to make a financial gain from selling fake habitat enhancements to developers”.
Will a threat of a £5,000 fine really stop this happening? I do not know whether anything else could be done if it were seen to be the case.
Finally, I very much support the comments of the noble Lord, Lord Deben, regarding our planning system and how we deliver net zero. That was a very important point to make.
Having said all that, as I mentioned at the beginning, we very much support the regulations, but some clarification in the areas that I have drawn attention to would be helpful and very much appreciated.
Lord Benyon Portrait Lord Benyon (Con)
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My Lords, I am very grateful for the contributions to this debate. The regulations debated here today will support the new mandatory net gain requirement, which will help secure positive outcomes for biodiversity, create better places for local communities and support a more consistent, streamlined and transparent planning process. This is very much only part of how we seek to deliver our 2030 targets, which my noble friend Lord Deben mentioned, of no net loss of species, and an increase by 2045. It is really important to make that clear.

We estimate that we are talking about around 6,900 hectares a year, but hundreds of thousands of hectares of other nature improvements are being incentivised by wider biodiversity credit schemes, carbon credit schemes and nature conservation measures that are being led through our environmental land management and other agri-environment schemes. Communities across England will benefit from new developments that work for both wildlife and people and create nature-rich places to live, while ensuring that they have the new homes that they need.

To take the point made clearly by the noble Baroness, Lady Bennett, there will continue to be a need for development under any party of government, which means that there will continue to be a risk of the loss of biodiversity. We need a system that works and is clear.

I take my noble friend’s point: I suspect that they were talking about the Natural England metric when he was at that conference. I would be the first to admit that that is a very complicated piece of work: it runs to a great many pages, and I have tried to run a competition in my head, if not in the department, about how many people understand it. The point is that, as we develop this and as those metrics are understood by more people—the people advising the businesses that seek to purchase the credits and the land managers who seek to make the land available—we will see a robust scheme that is accountable.

I will try to address the key points raised. The noble Baroness, Lady Bennett, quite rightly raised the issue of whether 10% goes far enough—why 10%? We consulted on the percentage gain to be required in the 2018 public consultation. Respondents set out varying views on the appropriate percentage gain, and there were calls for both higher and lower percentages—obviously, there will be people out there who did not want any and people who wanted a great deal more. We maintain the view that 10% strikes the right balance between the Government’s ambition for development and the certainty of achieving environmental outcomes to support the pressing need to reverse environmental decline while being affordable and deliverable for developers.

Developers and local authorities may wish to voluntarily pursue gains higher than 10%—a very good point made by the noble Baroness, Lady Thornhill. Where higher net gain percentages may be set in local planning policy, careful consideration in those events should be given to the feasibility of requirements above 10%, for example for smaller, self-build and community developments —I think that is really important. To be clear, biodiversity net gain means a strengthening, not a weakening, of the protections for the environment. The existing strong statutory and policy protections for our statutory protected sites, protected species and irreplaceable habitats will remain in place.

My noble friend talked about on-site enhancements and how they will be enforced. Local authorities will have a range of existing planning enforcement tools at their disposal, and the Environment Act includes mechanisms to ensure that commitments through conservation covenants are adhered to. The enforcing body which has entered an agreement to secure the site will play a key role in ensuring enforcement. This may be a local authority or could be a responsible body for a conservation covenant. Significant on-site biodiversity gains must be secured by a planning condition, planning obligation or conservation covenant, all of which bind the land, meaning that they apply to successor landowners as well. Off-site biodiversity gains must be secured, including management, by either a planning obligation or conservation covenant. Failure to deliver, or attempt to deliver, biodiversity net gain outcomes which are secured with conditions or obligations, subject to which planning permission is granted, can result in enforcement action by the planning authority.

The fines, along with the registration fees, will have to be reviewed as time goes by. Of course, we will see how it works. So much of this can and will need to be amended as we work it through. On the point about fines, if the kinds of greenwashers that the noble Baroness was referring to have not built the wetland or planted the trees or the wildflower meadow or whatever it is, the 30-year clock will not start until they have—so it is not only a fine but a delayed benefit to them.

The noble Baroness talked about projects for public good, which was a very good point. On the question of a hospital, the fees will be paid by the landowner, so it will not come out of the cost to the public purse, if you like. There will, of course, be a degree of management of those fees: some of them may find their way into front-ending the costs. There is a key point about nationally significant infrastructure projects: we are delaying the implementation of biodiversity net gain until next year for NSIPs because it is a more complicated matter. These are obviously much larger schemes and we want to make sure that there is biodiversity net gain—but we want to do it in the right way, so we will consult on that.

My noble friend talked about net zero. Our commitment on net zero, as he knows better than anyone, and for no net loss by 2030, are just some of those that are locked in law—we have to do it—so the Government have taken a range of measures, not least this extraordinarily exciting piece of legislation, the Environment Act, to deliver that. It is important that we see it working and we will continue to make sure that we look at all suggestions that can improve the planning system to deliver this.

The noble Baroness, Lady Thornhill, talked about monitoring. Integrating the biodiversity net gain requirement into existing planning processes is obviously what we are talking about. The Government are allowing the outcomes to benefit from existing enforcement and monitoring powers in the planning system. Planning application data is routinely published online and will describe how a development is achieving biodiversity net gain. Off-site habitat enhancement will be registered and will need to be secured, including any appropriate monitoring arrangements, through a conservation covenant or planning obligation. Planning authorities are required under the Natural Environment and Rural Communities Act 2006 to report on the actions they have carried out to meet their biodiversity net gain obligations and the details of biodiversity gains delivered or expected to be delivered.

There are some real-life examples, and here I will big-up Buckinghamshire Council, which this week has put information on its website setting out how landowners and developers should engage with it to seek to enter into Section 106 agreements to secure their land, including the estimates of associated costs. These will be negotiated through the Section 106 agreement process, but should cover the costs of the ongoing monitoring that the local planning authority—in this case Buckinghamshire —will carry out. One such estate, the Iford Estate, has already entered into Section 106 agreements to secure portions of land. In the example of Iford, it has entered into a Section 106 agreement with the local authority—the South Downs National Park Authority. Private sector marketplaces are emerging which list BNG units for sale, operating to join up landowners with developers looking to find off-site units. Examples include Addland, the Environmental Trading Platform and Savills Environmental Exchange. I think the Environment Bank is one of the leaders in this field.

Baroness Bennett of Manor Castle Portrait Baroness Bennett of Manor Castle (GP)
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It is interesting that the Minister chose the example of Buckinghamshire. I was referring to the apparent difference that is developing between north and south—that, broadly speaking, higher standards appear to be being set in the south. Are the Government planning to monitor the regional impacts of this, and is the north going to get the biodiversity net gain that it urgently needs? Will the Government act if it is not?

Lord Benyon Portrait Lord Benyon (Con)
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The legal requirement is across the country; there is no geographical lessening of the need for it. We will certainly be monitoring which local authorities we think do this properly and which do not, and that will be a matter of public record.

I should just comment on the key question of irreplaceable habitats. These are obviously England’s most valuable habitats. They have a high range of biodiversity value and are so difficult to recreate—ancient semi-natural woodland, peat bogs and that sort of thing. On 29 November, we published the draft irreplaceable habitat regulations, which set out the list of habitats to be considered irreplaceable habitat for biodiversity net gain purposes. The local planning authority must be satisfied that the adverse effect of the development on the biodiversity of the on-site habitat is minimised and that there is an appropriate compensation plan in place. The regulations also set out that losses of irreplaceable habitats cannot be compensated for using statutory biodiversity credits. It is important to note that irreplaceable habitats already have significant protection in the National Planning Policy Framework. Impacts on these habitats from development require the strongest of justifications.

I will address another point made by the noble Baroness, Lady Bennett. Off-site gains, which could be biodiversity gains, on other landholdings, or purchasing biodiversity units from the market, are part of the new hierarchy that sets out the draft regulations on biodiversity procedures. This ensures that, where impacts on habitats cannot be avoided or mitigated, compensation should be delivered either through off-site gains, as I say, or through enhancing and creating habitats on site, and, as a last resort, through purchasing statutory credits from the Government.

The right reverend Prelate the Bishop of Norwich speaks with great knowledge—I heard his outstanding maiden speech in this House. He is an ecologist, and I would say that his erstwhile career is now a growth industry, which answers some of the points he made. I do not know the exact number of local authorities that employ their own ecologists; I am very happy to seek that out and to write to noble Lords. It is a growth industry, because developers and local authorities are going to need them. There are a great many local authorities that use a contractual arrangement, and so do not employ them directly, but many still do.

20:15
The right reverend Prelate also made a very important point: biodiversity is not just about bugs, bees, animals and flowers; it is about humanity as well. The Dasgupta review—which I think is one of the great reports—was commissioned by the Treasury, and the first time anywhere in the world that a piece of work on biodiversity has been commissioned by a finance department. It makes very clear the economic importance of restoring biodiversity. As somebody once said: we are not free- holders; we are the tenants on this planet, with a full repairing lease. That was Margaret Thatcher. The question of stewardship which she raised is absolutely vital. It is an old-fashioned word with a very relevant meaning. If we want to hand on this planet and the environment in a better condition than we found them, we need to re-understand what stewardship really means.
The noble Baroness, Lady Bakewell, talked about the level of fees and who gets the fine. The fees go to Natural England to set up the register. Fines are snaffled by the Treasury, but, I am sure, in a way that will ultimately be redistributed back to the Environment Department.
None Portrait Noble Lords
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Oh!

Lord Benyon Portrait Lord Benyon (Con)
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They are warm and cuddly people, and they always bend to our will.

I absolutely reject what the noble Baroness said about the land use framework. The report that she and her colleagues produced is one of the best reports that I have read produced by a committee of either House. It is being taken extremely seriously. I understand that it is taking longer than we would like to produce our land use framework, but we are certainly not dismissive of it; we think it is an extremely valuable piece of work. She asked for an example of land that would perhaps have a lower requirement: on much brownfield land there will be very little biodiversity loss, so that is an example.

I turn to all noble Lords who raised the question of costs. We fully comply with the new burdens rules in government, and we want to make sure that local authorities are using them to their best needs. The Government have already committed over £15 million this year to assist local planning authorities in preparation for biodiversity net gain. Defra is working to make sure that the information that local planning authorities need to prepare is in place before mandatory biodiversity net gain comes into force. We know that many local planning authorities are already delivering biodiversity net gain and that there are examples of good practice; I have already cited one of them.

We are aware of a range of preparation activity ongoing. This includes increased ecological skills capacity and training, including in the biodiversity metric, evidence-gathering and a range of other areas. Defra has also funded the Planning Advisory Service to support local authority planners to prepare for mandatory biodiversity net gain, and there are 600 members in its practitioner network.

I hope I have covered most of the points raised. As confirmed in the Government’s Environmental Improvement Plan, this Government are committed to halt and reverse nature’s decline. Biodiversity net gain is a key enabler for this, giving the development industry an opportunity to work with the planning system to ensure development improves and protects our precious biodiversity, rather than further eroding it. I commend the draft regulations to the House.

Motion agreed.